YPF President Horacio Marín announced that the company is considering a “lower” price of fuel for the month of October. “The price of a barrel of oil has dropped u$s10 and last week it went up US$4. We are analyzing it and I promise that next week we will have a decision.“, he explained.
The possible drop in fuel prices for October
In a television interview, Marín announced that the state-owned company is considering lowering the prices of gasoline and diesel. This would be the first time that there has been a price reduction in 5 years: “The price of a barrel has dropped by US$10 and last week it rose by US$10.” u$s4. We are analyzing it and I promise that next week we will have a decision.“, he explained.
The YPF official explained: “The price of fuel depends on oil. If it goes up, the Fuel prices have to go up. If they go down, they have to go down.At YPF, if the price of oil goes down, users do not have to subsidize YPF because it is not fair that we take a profit above what is logical for the sale of fuel. Likewise, when the price of fuel goes up, we cannot raise the price of fuel because otherwise YPF will subsidize users. The price of a barrel fell by US$10 and rose by US$4 last week“.
Despite the announcement, it is still unclear how much the value could drop. However, if it materializes, it is expected that the same amount will be is higher for diesel than for gasoline.
“When we joined YPF, we saw a major distortion in the relative prices of gasoline and diesel compared to international prices. The value of gasoline in Argentina, compared to international prices, was much lower than that of diesel.so the same adjustment cannot be made for both fuels,” Marín added.
Finally, the president of YPF referred to the reduction of price differences between the different regions of Buenos Aires. In this regard, he stated: “When we entered, the difference between the prices of the different regions of Buenos Aires was reduced. Federal Capital and the suburban area was in the order of 15%. Today it is at 2% or 3%, practically nothing. This is based on logical justice. It cannot be that fuel is more expensive in the suburbs than in the Federal Capital.”
Petronas’ project in Rio Negro
In addition to the news regarding fuel prices, the top YPF official also gave details on the current status of the project to build a liquefied natural gas plant in Río Negro. Regarding the versions that announced that the Brazilian oil company was analyzing the possibility of not participating in the plan, Marín said that “we have to take out some of the drama“.
Along these lines, in the event that Petronas withdraws from the project, Marín said: “Nothing is happening. YPF is moving on to the next phase. We are already talking to Argentine companies that we also want to be included. There are also super majors that have approached and are interested in entering the chain. YPF has a leadership position in this project, which is exceptional. There are many reserves and we are also going to make it possible for other companies to enter.”.
For the moment, Marín explained that YPF is waiting since the decision falls on the Brazilian company: “It is a company decision and they have to report it.“.
YPF Petronas LNG Plant
In addition, the president of the state company provided details about the different phases of the project to be carried out in Río Negro, about which he assured that currently “YPF is working with Petronas on the plant issue“In this regard, he explained that there are two distinct phases: “floating LNG, liquefied natural gas at sea, and onshore LNG, on land.”
“We are now in the ship phase. The feasibility is being studied with Petronas. We called the five companies that best design ships and plants and, within two months, they will tell us how much they will charge us to do the detailed engineering. I estimate that they are around 100,000 euros.” US$200 million for the three companies“, Marin reported.
The YPF official said that, once this process is finished, a tender will be held in which the companies will have to detail “how they are going to build the plant, the times and the amounts.”We are two months away from actually putting US$200 million into investments“he concluded.
Finally, Marín concluded: We want YPF to grow, to be a company that is worth four times more in four years and eight times more with LNG. And our focus is that Argentina, leading the industry, exports US$30 billion“.
Source: Ambito
